Innovation Of Personal Finance Product Of The Bank Of Lanzhou

In recent years, with the deepening of financial reform in China, the banking industry is facing challenges of regulation and competition. As a result, intermediary business is developing vigorously. On the other hand, with the high-speed economic development and people’s income increases, the average investor’s demand for personal finance increasing. Dual driven by supply and demand, the individual financing business of commercial bank get rapid development. The quantity and raised funds of financial product increased for several years a substantial, and the kinds of financial products are also enriched.The Bank of Lanzhou is a city commercial bank which in the service of local economy, small and medium-sized enterprises and local residents. When faced with complicated market competition pattern, they must develop the personal finance business, and improve the service function and bank profitability in order to adapt to economic and social development and the deepening of financial reform, and realize its sustainable development. But due to the development of the financial industry in Gansu province is lower than the national average, combined with the short established time of the Bank of Lanzhou and its small scale, its personal finance business has problems such as product design is serious homogeneity and market segmentation is not enough. Therefore, it is necessary to make innovation of their personal financial product to improve and further promote the development of personal finance business.Firstly, this paper applies knowledge related to finance and game theory to build an evolutionary game model. With the model, this paper points out that, considering the scale of the bank and the current market situation, the imitation innovation of personal finance product of local commercial banks is advisable. Secondly, with the analysis of situation and problems in personal finance product of the bank of Lanzhou, this paper puts forward that the development of personal finance products of the bank of Lanzhou should join its own innovative elements into the simple imitation, and choose the imitation innovation. Then this paper makes a case analysis of personal finance product system of the China Merchants Bank and the Citibank. Their advantages and disadvantages in the process of development provide experience for the Bank of Lanzhou to innovate its personal finance product. Finally, this paper puts forward how should the Bank of Lanzhou make innovation of the personal finance products combine its own advantages and conform to local development policy, in order to meet customers’ diversified financial needs, promote the virtuous development of individual financing business of the Bank of Lanzhou, and make contributions to establishing " the golden segment of the Silk Road economic belt ".In this paper, contents are arranged as following:The first chapter is the introduction part, which introduces the background and significance of research and research status at home and abroad;The second chapter makes an overview of financial product of commercial bank from two aspects: the definition of financial product of commercial bank and its development course in our country. What’s more, this chapter introduces the relevant theories of commercial bank financial product’s innovation. On the basis of that, this chapter constructs an evolutionary game model to analyze the choice of innovation strategy for different bank group in our country;The third chapter analyzes the situation and problems of the Bank of Lanzhou. And through the comparison of similar products with the China Merchants Bank, this chapter points out that the present development mode of the pure imitation to the Bank of Lanzhou brings the small profits, and the bank should choose the imitation innovation combine with its own advantages;Chapter four makes a case analysis of personal finance product system of the China Merchants Bank and the Citibank. Through the analysis this chapter concludes the experience for the Bank of Lanzhou to innovate its personal finance product.Chapter five puts forward the concrete countermeasures for the Bank of Lanzhou to innovate its personal finance product from three aspects: design the product which has its own characteristics and comply with the local development policies, and strengthen the cooperation with other financial institutions. In addition, this chapter makes further illustrate combines with relevant examples.The last chapter is the conclusion part, summarizes the main content of this article, and puts forward the innovation and the insufficiency in this paper.